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Bankrupt to pay tax as well?

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asked on Jan 13, 2015 at 00:55
by   divine77
Hi All,

If I am a declared bankrupt but earning, do i have to file my taxes as per the norm?

Thanks!
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answered on Jan 18, 2016 at 19:57
by   Amarmekber
Everyone has to file a return. Whether you have to pay income tax depends upon whether you fall within the threshold as far as your earnings is considered taxable income in any given year. After that it depends on whether you have any allowable deductions and exemptions under the law.

As a bankrupt you are allowed to earn a certain amount and to disclose your earnings to your trustee in bankruptcy. Your trustee receives and additional amount you are allowed to keep in bankruptcy with he balance going to your creditors.

It is always good to gt a composition with your trustee and creditors going before you are discharged.
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